Maximizing energy savings and minimizing costs

356 Pages·9.341 MB·English

by  Studebaker, John M

Maximizing Energy Savings and
Minimizing Costs
John Studebaker, Ph.D.

Maximizing Energy Savings
and Minimizing Costs
John Studebaker, Ph.D.
Library of Congress Cataloging-in-Publication Data
Studebaker, John M.
Maximizing energy savings and minimizing costs / John Studebaker.
p. cm.
Includes index.
ISBN 0-88173-392-X (alk. paper) -- ISBN 0-88173-393-8 (electronic) -- ISBN
1-4200-8872-6 (taylor & francis distribution)
1. Electric utilities--Rates--United States. 2. Electric utilities--United States--
Costs. 3. Gas companies--Rates--United States. 4. Gas industry--United States--Costs.
5. Energy consumption--United States.
I. Title.
HD9685.U5S7946 2008
333.793’230973--dc22
2008029737

Maximizing Energy Savings and Minimizing Costs / John Studebaker.
©2009 by John Studebaker. All rights reserved. No part of this publication may be
reproduced or transmitted in any form or by any means, electronic or mechanical,
including photocopy, recording, or any information storage and retrieval system, without
permission in writing from the publisher.
Published by The Fairmont Press, Inc.
700 Indian Trail
Lilburn, GA 30047
tel: [phone]; fax: [phone]
http://www.fairmontpress.com
Distributed by Taylor & Francis Ltd.
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487, USA
E-mail: [email protected]
Distributed by Taylor & Francis Ltd.
23-25 Blades Court
Deodar Road
London SW15 2NU, UK
E-mail: [email protected]
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
0-88173-392-X (The Fairmont Press, Inc.)
1-4200-8872-6 (Taylor & Francis Ltd.)
While every effort is made to provide dependable information, the publisher,
authors, and editors cannot be held responsible for any errors or omissions.
iv
Dedication
To Virginia
v

Table of Contents
SECTION I ELECTRICITY
1 Regulation of Utilities .....................................................................3
2 Developing a Strategy for Reducing Electricity Costs .............15
3 The Electricity Utility Bill .............................................................31
4 Electricity Deregulation ................................................................45
5 Electricity Deregulation—The Current Status ..........................93
6 Deregulation—The Process ..........................................................99
7 Cogeneration ................................................................................113
8 Natural Gas ..................................................................................121
9 The Natural Gas Utility Bill .......................................................149

SECTION II NATURAL GAS
10 Natural gas—An Overview .......................................................161
11 Natural Gas Regulation ..............................................................169
12 Reducing Natural Gas Costs ......................................................181
13 The Natural Gas Flow Process ..................................................207
14 The Natural Gas Billing Process ................................................225
15 The Propane-Air System ............................................................251
16 The Natural Gas Deregulation Process ....................................259
17 The Natural Gas Contract Process ............................................269
18 The Monthly Natural Gas Billing Procedure ..........................303
19 Natural Gas Cost Reduction Strategies ....................................315
SECTION III ELECTRICITY and
NATURAL GAS HEDGING STRATEGIES
20 Electricity and Natural Gas Hedging Strategies .....................323
21 Electricity and Natural Gas Savings Opportunities ...............331
INDEX ..........................................................................................................335`
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Introduction
MAXIMIZING ENERGY SAVINGS
AND MINIMIZING COSTS
There are so many different (so-called) energy fixes available, that
many energy users are hesitant to do anything because of the apparent
complexity of these fixes. Many large energy users have completely lost
sight of the fact that they may not need (at least initially) time-consuming,
large investment fixes. Strange as this may sound, many users have little
or no practical knowledge about the basics of their energy purchases.
This book covers the basics of rate structures, how they apply to
energy purchases, the components of the purchase process, and the
methods and techniques required for maximizing energy savings and
minimizing costs.
This book provides the foundation upon which any successful,
long-term energy strategy must be based. The foundation of energy cost
minimizing process requires the knowledge of how current energy costs
are developed and applied. The foundation of a building is seldom seen
or considered, but if it is defective the building will fail. It is the same
for energy; if the knowledge foundation is lacking or defective, the entire
process will fail, causing unnecessary costs to be present and potentially
not even recognized.
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